Sprint will not participate in the 600MHz spectrum auction in 2016

Sprint will not participate in the 600MHz spectrum auction in 2016
Over the weekend, Sprint announced that it would not participate in the highly anticipated spectrum auction next year. The carrier noted that its current spectrum portfolio is “sufficient” enough to continue its network upgrades.

Sprint holds a large amount of spectrum, albeit in the higher frequency bands. The 600MHz block up for sale next year is considered beach-front property in the wireless industry. The frequency block has favorable building penetration and coverage properties.

T-Mobile has been making a lot of fuss over the auction to keep the two big players, AT&T and Verizon, from dominating the auction with their deep pockets. The auction is expected to bring in large amounts of revenue to the government, and the companies, mostly television broadcasters, that currently use the spectrum.

The amount of money that is expected to change hands may be part of the decision process at Sprint, whose balance sheet has not been seeing more than its fair share of red ink the past several years. Such circumstances certainly played a role in Sprint’s evaluation of its cash flow, even with backing from SoftBank.

With this announcement, and the fact that Sprint sat out of the AWS-3 auction which ended earlier this year, analysts on the street are concerned about Sprint’s ongoing viability. Those concerns are bolstered by Sprint CEO Marcelo Claure’s statement that the company would be better situated if it was merged with a cable company.

sources: Reuters via IBT

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18 Comments

1. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Time to sprint back to the finish line.

2. bambamboogy02

Posts: 834; Member since: Jun 23, 2012

Sprint should give up.

5. zinger69

Posts: 86; Member since: Feb 13, 2014

Why should they give up?

7. engineer-1701d unregistered

Because they are horrible service u don't get it because u never felt with them I did for 14 years afraid to try another after bad Verizon in 2000 then Sprint for 5 then Nextel the best service ever until Sprint destroyed it by merger

16. zinger69

Posts: 86; Member since: Feb 13, 2014

It all depends where you are. It's been fine for me.

17. bambamboogy02

Posts: 834; Member since: Jun 23, 2012

Horrible service, they arent investing in their own future, and they think they should be merged with a cable company. They should upgrade their network ASAP. Like Tmobile at least. If there current spectrum is sufficient enough to upgrade, then come on with it.

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

I'm still trying to figure out how Sprint still has customers.

10. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

They still have customers for the same reason people use upgrades to get flip phones: Too many people are just dumb or lazy.

18. downphoenix

Posts: 3165; Member since: Jun 19, 2010

This is just really stupid of them. They want to give people Iphone 6s for $1 a month and bog down their network even further, but they don't want to improve it with better spectrum? A true enigma.

4. Omarc07

Posts: 574; Member since: Nov 12, 2012

I don't care bout sprint I just want att to get lots of 600 mhz spectrum since I have em

6. kg4icg

Posts: 83; Member since: May 18, 2008

Now here is the funny part, no one will be able to start using that spectrum until around 2020.

8. combatmedic870

Posts: 982; Member since: Sep 02, 2015

Exactly! This may actually bring us up to LTE standards.

9. zig8100

Posts: 243; Member since: Dec 13, 2012

Sprint had 800 which is good enough

12. Augustine

Posts: 1043; Member since: Sep 28, 2013

That was my first thought trying to explain this decision. Indeed, AWS3 would make no sense to its spectrum holdings, since it's no better than band 2, which Sprint has plenty of. Yes, plenty, with 15+15 or up to 20+20MHz in most of the country, however, arguably enough. But its SMR band holdings, most inherited from Nextel, are too fragmented, giving Sprint at most just 5+5MHz in many areas. It does not seem to me that Sprint has enough spectrum in UHF and, if it does pass on this auction, it'll be at least a decade before more UHF spectrum is carved out, if ever, not boding well for its viability.

11. zig8100

Posts: 243; Member since: Dec 13, 2012

Has***

13. jsjammu

Posts: 169; Member since: Nov 13, 2014

Bad move Sprint. This would be the last stupid decisions Sprint would make before it's sold, bought, bankrupt or taken over. This goes back to the decision to buy Nextel, WiMAX, etc etc.

14. Fire5

Posts: 315; Member since: Feb 13, 2015

s**t !! It is the best company in terms of customer service but the reality is that your data is slow and 4G in many !!! Areas in a trash. But never let an upset customer and that's super important.

15. Rock_Hardwood

Posts: 117; Member since: May 11, 2015

RIP sprint

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